US President Trump once again pressured Federal Reserve Chairman Powell to take measures to cut interest rates. Trump posted on the social media platform Truth Social, stating that the US no longer has inflation, pointing out that the prices of goods such as gasoline, energy, and groceries are falling, and arguing that the Federal Reserve should implement rate cuts similar to those in Europe and China.
In the post, Trump wrote: "The Federal Reserve must lower rates, just like Europe and China have done." He also questioned Powell: "What’s the matter with ‘Mr. Delay’ Powell? Isn't this a bit unfair to the soon-soaring USA?" He concluded by saying, "Let the rate cuts happen, that would be a wonderful thing!"
This statement was released just as the US Bureau of Labor Statistics published the April Consumer Price Index (CPI) report. The data showed that April's CPI rose by 0.2% month over month and 2.3% year over year, both below market expectations. Additionally, the core CPI, excluding food and energy prices, increased by 0.2% month over month and 2.8% year over year, which was in line with expectations. Of note, the 2.3% year-over-year increase in CPI and the 2.8% increase in core CPI were the lowest since early 2021.
However, despite the easing of inflation in the US, Trump has not stopped pressuring the Federal Reserve. Trump pointed out that the Federal Reserve's high-interest policy has exacerbated consumer costs in the US and raised concerns about an economic slowdown. Under Trump's tariff policies, almost all countries face a 10% tariff, a measure that puts additional pressure on the US economy. Trump's criticism has not changed the Federal Reserve's stance, as Powell and other Federal Reserve officials have repeatedly stated that Trump's tariff policies increase the risk of inflation and unemployment, so the Federal Reserve will not rush to adjust interest rates.
In recent press conferences, Powell has repeatedly used the word "wait," indicating that the Federal Reserve remains cautious about whether to cut rates. Trump's criticisms seem not to have altered the Federal Reserve's position, with Powell stating that the Federal Reserve will continue to closely monitor economic developments and data to make timely decisions.
